The Live Events Dictionary / Merchandise

A merchandise commission is an agreed share of sales paid to a venue, concessionaire or another party. “Twenty percent” is incomplete until the agreement names the sales base, products covered, tax treatment and any separate charges.

Merch revenue can help support a tour, but the cash left after a venue cut is not automatically profit. Stock costs, selling labor, payment processing, transport and other expenses still matter.

Ask what the percentage applies to

• Gross customer payments, sales excluding specified tax, or another defined base?

• All merchandise or different rates for apparel, recorded music and accessories?

• Refunds, discounts and complimentary items?

• Cash sales, card sales and any other accepted payment methods?

• A separate seller fee, card charge, minimum or fixed facility charge?

atVenu’s documentation permits item-level changes to venue-cut and tax rates, including different treatment of music, apparel and other goods. That is a concrete reason to check the categories instead of applying one headline percentage to every item.

A fictional settlement calculation

Suppose an agreement defines commissionable sales after the agreed tax treatment. Apparel sales on that base are $2,400 at a 20% venue rate. Recorded-music sales are $600 at 10%.

• Apparel commission: $2,400 × 20% = $480.

• Recorded-music commission: $600 × 10% = $60.

• Total commission: $540.

• Sales base less that commission: $3,000 − $540 = $2,460.

The $2,460 is a subtotal, not a profit claim. If separately agreed selling labor is $150, the next subtotal is $2,310 before any other applicable expenses. Keep every deduction visible. These rates are fictional, not an industry standard or a recommended deal.

Reconcile stock and money

Use a count-in, any additional stock delivered, and a count-out to understand unit movement. Record returns, giveaways, damaged stock and transfers separately. A missing shirt is not automatically a paid sale, and a card-sales total does not describe cash sales.

Compare the stock movement with the sales records before agreeing the final statement. Note the currency and whether the statement includes tax, so figures from different shows remain comparable.

Resolve the terms before doors

Confirm who supplies sellers, equipment and change; who controls pricing; who receives card payouts; and when the final balance is due. Keep written confirmation of any exception to the standard venue terms. A disputed percentage is harder to resolve when the truck is waiting.

Next: show settlements, concert break-even and the tour budget template.

Reference

atVenu: Item-specific venue cuts and tax rates. The calculation is an original fictional example.